GMDC Expands Lignite Mining with Three New Mines in Gujarat

Gujarat Mineral Development Corporation (GMDC) is set to enhance its lignite mining capabilities by launching three new mines in the current financial year, ensuring a steady lignite supply for the state's industries as older mines near closure.

Mining operations will begin at the EFG Valia and Damlai mines in Bharuch, alongside the Lakhpat (Punrajpur) mine in Kutch. These projects are part of GMDC's broader effort to develop six new lignite mines, which together contain reserves of 483 million tonnes. Among these, EFG Valia will be the largest, with a peak production capacity of 5 MTPA. Lakhpat and Damlai are expected to produce 3 MTPA and 2 MTPA, respectively.

Swagat Ray, GM of GMDC, stated, “We are progressing with environmental clearances and land acquisition for these three mines. Initial production will be modest, but we expect a combined annual output of 10 million tonnes from these sites.”

The company has set a target of eight million tonnes for the year and had already surpassed 7.5 million tonnes by mid-March, exceeding last year’s total of 6.5 million tonnes. These new projects are vital as the operational life of existing mines nears its end.

News by Rahul Yelligetti.